Summary of Legislative Amendments

As of April 9, 2014, Section 92 of the Strata Property Act was amended to clarify that the cost of a depreciation report can be an operating expense. This means the cost to obtain depreciation report may be included in the annual budget, which is approved by a majority vote.

Also effective April 9, 2014, the cost to obtain a depreciation report can be paid out of the contingency reserve fund (CRF) by a majority vote.

This creates an exception to the general rule that a three-quarter vote resolution is required to approve expenditures from the CRF. Owners are now permitted to approve funding for repairs, maintenance or replacement recommended in the most recent depreciation report by a majority vote.

To summarize: a strata corporation can now use a majority vote to fund both a depreciation report and the work recommended in the depreciation report from the Contingency Reserve Fund Account.